Planning for retirement is piece of cake on Planet Gold

When you plan for retirement on planet earth, the money you put aside loses its value from one year to the other so it is imperative to get a good interest rate or another form of investment that will be sufficient to compensate for both the inflation (translation: lost of value of the dollar) and the taxes you will pay on this earning.

On planet Gold, the money you put aside (which is in effect Gold and/or Silver) is put aside year after year, growing in amount and not losing any value. In addition to that, the money can find good returns when put into a loan. Hence, after a few years, that money has doubled in overall value. Since taxes are minimal on Planet Gold, you gain on that too.

Think about it, in an environment where inflation eat your dollars at a rate of say 3%, you need an interest rate of at least 3% just to get even - not counting the taxes you will have to pay on that 3% of interest you will earn. So in reality, you need 4 or 5% depending on the tax rate, just to match inflation.

Bob on Planet Gold saves the equivalent of $20,000/year in gold/silver money on Planet Gold and earns 6% on his money. In 10 years, Bob has: $263,615.90

Don't forget 10 years later that $263,615.90 has the same purchase power has $263,615.90 would have when he started saving.

Mark on Planet Earth (say USA for example), saves also $20,000/year in US dollar and saves them in CD or equivalent, bringing also 6% per year (I'm being generous). Imagine inflation at 3% and taxes eating 0.5% of this 6% earning.

So, because of the taxes, Mark earns only 5.5% interest

At the end of the 10 year, Mark has $257,507.08 in savings. Not too far away... but we need now to account for inflation... Subtracting 3% per year out of the 5.5%, this gives 2.5% interest rate. We also need to account the lost of value of the $20,000 per year. This means $1 at year 10 is worth $0.7374 of the dollar at year 1, when he started saving. So, that's 26% of hidden Tax (So much for Bush tax cut)

So, this gives Mark $197,331.06 of saving in "year 1" dollars, effectively losing almost $3,000. See table



Unfortunately, more than often for many people on planet earth, the interest rate are below the rate of inflation. Adding taxes on top of that and they are losing money!

Mark, you need to find a space ship and move to Planet Gold. Another option is to talk to your politicians about Planet Gold and how earth could do the same :-)


Regards

Phil